This Article applies to an agency's exercise of its authority
to adopt a rule. A rule is not valid unless it is adopted in substantial
compliance with this Article. An agency shall not seek to implement or enforce
against any person a policy, guideline, or other interpretive statement that
meets the definition of a rule contained in G.S. 150B-2(8a) if the policy,
guideline, or other interpretive statement has not been adopted as a rule in
accordance with this Article. (1991, c. 418, s. 1;
2011-398, s. 1; 2012-187, s. 2.)

§ 150B-19. Restrictions on what can be adopted as a rule.

An agency may not adopt a rule that does one or more of the
following:

(1) Implements or interprets a law unless that law or
another law specifically authorizes the agency to do so.

(2) Enlarges the scope of a profession, occupation, or
field of endeavor for which an occupational license is required.

(3) Imposes criminal liability or a civil penalty for
an act or omission, including the violation of a rule, unless a law
specifically authorizes the agency to do so or a law declares that violation of
the rule is a criminal offense or is grounds for a civil penalty.

(4) Repeats the content of a law, a rule, or a federal
regulation. A brief statement that informs the public of a requirement imposed
by law does not violate this subdivision and satisfies the "reasonably
necessary" standard of review set in G.S. 150B-21.9(a)(3).

(5) Establishes a fee or other charge for providing a
service in fulfillment of a duty unless a law specifically authorizes the
agency to do so or the fee or other charge is for one of the following:

a. A service to a State, federal, or local
governmental unit.

b. A copy of part or all of a State publication or
other document, the cost of mailing a document, or both.

c. A transcript of a public hearing.

d. A conference, workshop, or course.

e. Data processing services.

(6) Allows the agency to waive or modify a requirement
set in a rule unless a rule establishes specific guidelines the agency must
follow in determining whether to waive or modify the requirement.

(a) In developing and drafting rules for adoption in
accordance with this Article, agencies shall adhere to the following
principles:

(1) An agency may adopt only rules that are expressly
authorized by federal or State law and that are necessary to serve the public
interest.

(2) An agency shall seek to reduce the burden upon
those persons or entities who must comply with the rule.

(3) Rules shall be written in a clear and unambiguous
manner and must be reasonably necessary to implement or interpret federal or
State law.

(4) An agency shall consider the cumulative effect of
all rules adopted by the agency related to the specific purpose for which the
rule is proposed. The agency shall not adopt a rule that is unnecessary or
redundant.

(5) When appropriate, rules shall be based on sound,
reasonably available scientific, technical, economic, and other relevant
information. Agencies shall include a reference to this information in the
notice of text required by G.S. 150B-21.2(c).

(6) Rules shall be designed to achieve the regulatory
objective in a cost-effective and timely manner.

(b) Each agency subject to this Article shall conduct
an annual review of its rules to identify existing rules that are unnecessary,
unduly burdensome, or inconsistent with the principles set forth in subsection
(a) of this section. The agency shall repeal any rule identified by this
review.

(c) Each agency subject to this Article shall post on
its Web site, no later than the publication date of the notice of text in the
North Carolina Register, all of the following:

(1) The text of a proposed rule.

(2) An explanation of the proposed rule and the reason
for the proposed rule.

(3) The federal certification required by subsection
(g) of this section.

(4) Instructions on how and where to submit oral or
written comments on the proposed rule, including a description of the procedure
by which a person can object to a proposed rule and subject the proposed rule
to legislative review.

(5) Any fiscal note that has been prepared for the
proposed rule.

If an agency proposes any change to a rule or fiscal note
prior to the date it proposes to adopt a rule, the agency shall publish the
proposed change on its Web site as soon as practicable after the change is
drafted. If an agency's staff proposes any such change to be presented to the
rule-making agency, the staff shall publish the proposed change on the agency's
Web site as soon as practicable after the change is drafted.

(d) Each agency shall determine whether its policies
and programs overlap with the policies and programs of another agency. In the
event two or more agencies' policies and programs overlap, the agencies shall
coordinate the rules adopted by each agency to avoid unnecessary, unduly
burdensome, or inconsistent rules.

(e) Each agency shall quantify the costs and benefits
to all parties of a proposed rule to the greatest extent possible. Prior to
submission of a proposed rule for publication in accordance with G.S. 150B-21.2,
the agency shall review the details of any fiscal note prepared in connection
with the proposed rule and approve the fiscal note before submission.

(f) If the agency determines that a proposed rule will
have a substantial economic impact as defined in G.S. 150B-21.4(b1), the agency
shall consider at least two alternatives to the proposed rule. The alternatives
may have been identified by the agency or by members of the public.

(g) Whenever an agency proposes a rule that is
purported to implement a federal law, or required by or necessary for
compliance with federal law, or on which the receipt of federal funds is
conditioned, the agency shall:

(1) Prepare a certification identifying the federal law
requiring adoption of the proposed rule. The certification shall contain a
statement setting forth the reasons why the proposed rule is required by
federal law. If all or part of the proposed rule is not required by federal law
or exceeds the requirements of federal law, then the certification shall state
the reasons for that opinion.

(2) Post the certification on the agency Web site in
accordance with subsection (c) of this section.

(3) Maintain a copy of the federal law and provide to
the Office of State Budget and Management the citation to the federal law
requiring or pertaining to the proposed rule.

(a) An agency authorized to implement and enforce
State and federal environmental laws may not adopt a rule for the protection of
the environment or natural resources that imposes a more restrictive standard,
limitation, or requirement than those imposed by federal law or rule, if a
federal law or rule pertaining to the same subject matter has been adopted,
unless adoption of the rule is required by one of the subdivisions of this
subsection. A rule required by one of the following subdivisions of this subsection
shall be subject to the provisions of G.S. 150B-21.3(b1) as if the rule
received written objections from 10 or more persons under G.S. 150B-21.3(b2):

(1) A serious and unforeseen threat to the public
health, safety, or welfare.

(2) An act of the General Assembly or United States
Congress that expressly requires the agency to adopt rules.

(3) A change in federal or State budgetary policy.

(4) A federal regulation required by an act of the
United States Congress to be adopted or administered by the State.

(5) A court order.

(b) For purposes of this section, "an agency
authorized to implement and enforce State and federal environmental laws"
means any of the following:

(1) The Department of Environmental Quality created
pursuant to G.S. 143B-279.1.

(2) The Environmental Management Commission created
pursuant to G.S. 143B-282.

(3) The Coastal Resources Commission established
pursuant to G.S. 113A-104.

(4) The Marine Fisheries Commission created pursuant to
G.S. 143B-289.51.

(5) The Wildlife Resources Commission created pursuant
to G.S. 143-240.

(6) The Commission for Public Health created pursuant
to G.S. 130A-29.

(7) The Sedimentation Control Commission created
pursuant to G.S. 143B-298.

(8) The North Carolina Oil and Gas Commission created
pursuant to G.S. 143B-293.1.

(a) Petition. - A person may petition an agency to
adopt a rule by submitting to the agency a written rule-making petition
requesting the adoption. A person may submit written comments with a rule-making
petition. If a rule-making petition requests the agency to create or amend a
rule, the person must submit the proposed text of the requested rule change and
a statement of the effect of the requested rule change. Each agency must
establish by rule the procedure for submitting a rule-making petition to it and
the procedure the agency follows in considering a rule-making petition. An
agency receiving a rule-making petition shall, within three business days of
receipt of the petition, send the proposed text of the requested rule change
and the statement of the effect of the requested rule change to the Office of
Administrative Hearings. The Office of Administrative Hearings shall, within
three business days of receipt of the proposed text of the requested rule change
and the statement of the effect of the requested rule change, distribute the
information via its mailing list and publish the information on its Web site.

(b) Time. - An agency must grant or deny a rule-making
petition submitted to it within 30 days after the date the rule-making petition
is submitted, unless the agency is a board or commission. If the agency is a
board or commission, it must grant or deny a rule-making petition within 120
days after the date the rule-making petition is submitted.

(c) Action. - If an agency denies a rule-making
petition, it must send the person who submitted the petition a written
statement of the reasons for denying the petition. If an agency grants a rule-making
petition, it must inform the person who submitted the rule-making petition of
its decision and must initiate rule-making proceedings. When an agency grants a
rule-making petition, the notice of text it publishes in the North Carolina
Register may state that the agency is initiating rule making as the result of a
rule-making petition and state the name of the person who submitted the rule-making
petition. If the rule-making petition requested the creation or amendment of a
rule, the notice of text the agency publishes may set out the text of the
requested rule change submitted with the rule-making petition and state whether
the agency endorses the proposed text.

(d) Review. - Denial of a rule-making petition is a
final agency decision and is subject to judicial review under Article 4 of this
Chapter. Failure of an agency to grant or deny a rule-making petition within
the time limits set in subsection (b) is a denial of the rule-making petition.

(a) Each agency must designate one or more rule-making
coordinators to oversee the agency's rule-making functions. The coordinator
shall serve as the liaison between the agency, other agencies, units of local
government, and the public in the rule-making process. The coordinator shall
report directly to the agency head.

(b) The rule-making coordinator shall be responsible
for the following:

(1) Preparing notices of public hearings.

(2) Coordinating access to the agency's rules.

(3) Screening all proposed rule actions prior to
publication in the North Carolina Register to assure that an accurate fiscal
note has been completed as required by G.S. 150B-21.4(b).

(4) Consulting with the North Carolina Association of
County Commissioners and the North Carolina League of Municipalities to
determine which local governments would be affected by any proposed rule
action.

(5) Providing the North Carolina Association of County
Commissioners and the North Carolina League of Municipalities with copies of
all fiscal notes required by G.S. 150B-21.4(b), prior to publication in the
North Carolina Register of the proposed text of a permanent rule change.

(6) Coordinating the submission of proposed rules to
the Governor as provided by G.S. 150B-21.26.

(c) At the earliest point in the rule-making process
and in consultation with the North Carolina Association of County
Commissioners, the North Carolina League of Municipalities, and with samples of
county managers or city managers, as appropriate, the rule-making coordinator
shall lead the agency's efforts in the development and drafting of any rules or
rule changes that could:

(1) Require any unit of local government, including a
county, city, school administrative unit, or other local entity funded by or
through a unit of local government to carry out additional or modified
responsibilities;

(2) Increase the cost of providing or delivering a
public service funded in whole or in part by any unit of local government; or

(3) Otherwise affect the expenditures or revenues of a
unit of local government.

(d) The rule-making coordinator shall send to the
Office of State Budget and Management for compilation a copy of each final
fiscal note prepared pursuant to G.S. 150B-21.4(b).

(e) The rule-making coordinator shall compile a
schedule of the administrative rules and amendments expected to be proposed
during the next fiscal year. The coordinator shall provide a copy of the
schedule to the Office of State Budget and Management in a manner proposed by
that Office.

(a) Adoption. - An agency may adopt a temporary rule
when it finds that adherence to the notice and hearing requirements of G.S. 150B-21.2
would be contrary to the public interest and that the immediate adoption of the
rule is required by one or more of the following:

(1) A serious and unforeseen threat to the public
health, safety, or welfare.

(2) The effective date of a recent act of the General
Assembly or the United States Congress.

(3) A recent change in federal or State budgetary
policy.

(4) A recent federal regulation.

(5) A recent court order.

(6) The need for a rule establishing review criteria as
authorized by G.S. 131E-183(b) to complement or be made consistent with
the State Medical Facilities Plan approved by the Governor, if the rule
addresses a matter included in the State Medical Facilities Plan, and the
proposed rule and a notice of public hearing is submitted to the Codifier of
Rules prior to the effective date of the Plan.

(7) The need for the Wildlife Resources Commission to
establish any of the following:

a. No wake zones.

b. Hunting or fishing seasons, including provisions
for manner of take or any other conditions required for the implementation of
such season.

c. Hunting or fishing bag limits.

d. Management of public game lands as defined in G.S. 113-129(8a).

(8) The need for the Secretary of State to implement
the certification technology provisions of Article 11A of Chapter 66 of the
General Statutes, to adopt uniform Statements of Policy that have been
officially adopted by the North American Securities Administrators Association,
Inc., for the purpose of promoting uniformity of state securities regulation,
and to adopt rules governing the conduct of hearings pursuant to this Chapter.

(9) The need for the Commissioner of Insurance to
implement the provisions of G.S. 58-2-205.

(10) The need for the State Chief Information Officer to
implement the information technology procurement provisions of Article 15 of
Chapter 143B of the General Statutes.

(11) The need for the State Board of Elections to adopt a
temporary rule after prior notice or hearing or upon any abbreviated notice or
hearing the agency finds practical for one or more of the following:

a. In accordance with the provisions of G.S. 163-22.2.

b. To implement any provisions of state or federal law
for which the State Board of Elections has been authorized to adopt rules.

c. The need for the rule to become effective
immediately in order to preserve the integrity of upcoming elections and the
elections process.

(17) To maximize receipt of federal funds for the
Medicaid or NC Health Choice programs within existing State appropriations, to
reduce Medicaid or NC Health Choice expenditures, and to reduce Medicaid and NC
Health Choice fraud and abuse.

(a2) A recent act, change, regulation, or order as used
in subdivisions (2) through (5) of subsection (a) of this section means an act,
change, regulation, or order occurring or made effective no more than 210 days
prior to the submission of a temporary rule to the Rules Review Commission.
Upon written request of the agency, the Commission may waive the 210-day
requirement upon consideration of the degree of public benefit, whether the
agency had control over the circumstances that required the requested waiver,
notice to and opposition by the public, the need for the waiver, and previous
requests for waivers submitted by the agency.

(a3) Unless otherwise provided by law, the agency shall:

(1) At least 30 business days prior to adopting a
temporary rule, submit the rule and a notice of public hearing to the Codifier
of Rules, and the Codifier of Rules shall publish the proposed temporary rule
and the notice of public hearing on the Internet to be posted within five
business days.

(2) At least 30 business days prior to adopting a
temporary rule, notify persons on the mailing list maintained pursuant to G.S. 150B-21.2(d)
and any other interested parties of its intent to adopt a temporary rule and of
the public hearing.

(3) Accept written comments on the proposed temporary
rule for at least 15 business days prior to adoption of the temporary rule.

(4) Hold at least one public hearing on the proposed
temporary rule no less than five days after the rule and notice have been
published.

(a4) An agency must also prepare a written statement of
its findings of need for a temporary rule stating why adherence to the notice
and hearing requirements in G.S. 150B-21.2 would be contrary to the public
interest and why the immediate adoption of the rule is required. If the
temporary rule establishes a new fee or increases an existing fee, the agency
shall include in the written statement that it has complied with the
requirements of G.S. 12-3.1. The statement must be signed by the head of
the agency adopting the temporary rule.

(b) Review. - When an agency adopts a temporary rule
it must submit the rule and the agency's written statement of its findings of
the need for the rule to the Rules Review Commission. Within 15 business days
after receiving the proposed temporary rule, the Commission shall review the
agency's written statement of findings of need for the rule and the rule to
determine whether the statement meets the criteria listed in subsection (a) of
this section and the rule meets the standards in G.S. 150B-21.9. The
Commission shall direct a member of its staff who is an attorney licensed to
practice law in North Carolina to review the statement of findings of need and
the rule. The staff member shall make a recommendation to the Commission, which
must be approved by the Commission or its designee. The Commission's designee
shall be a panel of at least three members of the Commission. In reviewing the
statement, the Commission or its designee may consider any information
submitted by the agency or another person. If the Commission or its designee
finds that the statement meets the criteria listed in subsection (a) of this
section and the rule meets the standards in G.S. 150B-21.9, the Commission
or its designee must approve the temporary rule and deliver the rule to the
Codifier of Rules within two business days of approval. The Codifier of Rules
must enter the rule into the North Carolina Administrative Code on the sixth
business day following receipt from the Commission or its designee.

(b1) If the Commission or its designee finds that the
statement does not meet the criteria listed in subsection (a) of this section
or that the rule does not meet the standards in G.S. 150B-21.9, the
Commission or its designee must immediately notify the head of the agency. The
agency may supplement its statement of need with additional findings or submit
a new statement. If the agency provides additional findings or submits a new
statement, the Commission or its designee must review the additional findings
or new statement within five business days after the agency submits the
additional findings or new statement. If the Commission or its designee again
finds that the statement does not meet the criteria listed in subsection (a) of
this section or that the rule does not meet the standards in G.S. 150B-21.9,
the Commission or its designee must immediately notify the head of the agency
and return the rule to the agency.

(b2) If an agency decides not to provide additional
findings or submit a new statement when notified by the Commission or its
designee that the agency's findings of need for a rule do not meet the required
criteria or that the rule does not meet the required standards, the agency must
notify the Commission or its designee of its decision. The Commission or its
designee shall then return the rule to the agency. When the Commission returns
a rule to an agency in accordance with this subsection, the agency may file an
action for declaratory judgment in Wake County Superior Court pursuant to
Article 26 of Chapter 1 of the General Statutes.

(b3) Notwithstanding any other provision of this
subsection, if the agency has not complied with the provisions of G.S. 12-3.1,
the Codifier of Rules shall not enter the rule into the Code.

(c) Standing. - A person aggrieved by a temporary rule
adopted by an agency may file an action for declaratory judgment in Wake County
Superior Court pursuant to Article 26 of Chapter 1 of the General Statutes. In
the action, the court shall determine whether the agency's written statement of
findings of need for the rule meets the criteria listed in subsection (a) of
this section and whether the rule meets the standards in G.S. 150B-21.9.
The court shall not grant an ex parte temporary restraining order.

(c1) Filing a petition for rule making or a request for
a declaratory ruling with the agency that adopted the rule is not a
prerequisite to filing an action under this subsection. A person who files an
action for declaratory judgment under this subsection must serve a copy of the
complaint on the agency that adopted the rule being contested, the Codifier of
Rules, and the Commission.

(d) Effective Date and Expiration. - A temporary rule
becomes effective on the date specified in G.S. 150B-21.3. A temporary
rule expires on the earliest of the following dates:

(1) The date specified in the rule.

(2) The effective date of the permanent rule adopted to
replace the temporary rule, if the Commission approves the permanent rule.

(3) The date the Commission returns to an agency a
permanent rule the agency adopted to replace the temporary rule.

(4) The effective date of an act of the General
Assembly that specifically disapproves a permanent rule adopted to replace the
temporary rule.

(5) 270 days from the date the temporary rule was
published in the North Carolina Register, unless the permanent rule adopted to
replace the temporary rule has been submitted to the Commission.

(a) Adoption. - An agency may adopt an emergency rule
without prior notice or hearing or upon any abbreviated notice or hearing the
agency finds practical when it finds that adherence to the notice and hearing
requirements of this Part would be contrary to the public interest and that the
immediate adoption of the rule is required by a serious and unforeseen threat
to the public health or safety. When an agency adopts an emergency rule, it
must simultaneously commence the process for adopting a temporary rule by
submitting the rule to the Codifier of Rules for publication on the Internet in
accordance with G.S. 150B-21.1(a3). The Department of Health and Human Services
or the appropriate rule-making agency within the Department may adopt emergency
rules in accordance with this section when a recent act of the General Assembly
or the United States Congress or a recent change in federal regulations
authorizes new or increased services or benefits for children and families and
the emergency rule is necessary to implement the change in State or federal
law.

(b) Review. - An agency must prepare a written
statement of its findings of need for an emergency rule. The statement must be
signed by the head of the agency adopting the rule. When an agency adopts an
emergency rule, it must submit the rule and the agency's written statement of
its findings of the need for the rule to the Codifier of Rules. Within two
business days after an agency submits an emergency rule, the Codifier of Rules
must review the agency's written statement of findings of need for the rule to
determine whether the statement of need meets the criteria in subsection (a) of
this section. In reviewing the statement, the Codifier of Rules may consider
any information submitted by the agency or another person. If the Codifier of
Rules finds that the statement meets the criteria, the Codifier of Rules must
notify the head of the agency and enter the rule in the North Carolina
Administrative Code on the sixth business day following approval by the Codifier
of Rules.

If the Codifier of Rules finds that the statement does not
meet the criteria in subsection (a) of this section, the Codifier of Rules must
immediately notify the head of the agency. The agency may supplement its
statement of need with additional findings or submit a new statement. If the
agency provides additional findings or submits a new statement, the Codifier of
Rules must review the additional findings or new statement within one business
day after the agency submits the additional findings or new statement. If the
Codifier of Rules again finds that the statement does not meet the criteria in
subsection (a) of this section, the Codifier of Rules must immediately notify
the head of the agency.

If an agency decides not to provide additional findings or
submit a new statement when notified by the Codifier of Rules that the agency's
findings of need for a rule do not meet the required criteria, the agency must
notify the Codifier of Rules of its decision. The Codifier of Rules must then
enter the rule in the North Carolina Administrative Code on the sixth business
day after receiving notice of the agency's decision. Notwithstanding any other
provision of this subsection, if the agency has not complied with the
provisions of G.S. 12-3.1, the Codifier of Rules shall not enter the rule into
the Code.

(c) Standing. - A person aggrieved by an emergency
rule adopted by an agency may file an action for declaratory judgment in Wake
County Superior Court pursuant to Article 26 of Chapter 1 of the General Statutes.
In the action, the court shall determine whether the agency's written statement
of findings of need for the rule meets the criteria listed in subsection (a) of
this section and whether the rule meets the standards in G.S. 150B-21.9. The
court shall not grant an ex parte temporary restraining order.

Filing a petition for rule making or a request for a
declaratory ruling with the agency that adopted the rule is not a prerequisite
to filing an action under this subsection. A person who files an action for
declaratory judgment under this subsection must serve a copy of the complaint
on the agency that adopted the rule being contested, the Codifier of Rules, and
the Commission.

(d) Effective Date and Expiration. - An emergency rule
becomes effective on the date specified in G.S. 150B-21.3. An emergency rule
expires on the earliest of the following dates:

(1) The date specified in the rule.

(2) The effective date of the temporary rule adopted to
replace the emergency rule, if the Commission approves the temporary rule.

(3) The date the Commission returns to an agency a
temporary rule the agency adopted to replace the emergency rule.

(4) Sixty days from the date the emergency rule was
published in the North Carolina Register, unless the temporary rule adopted to
replace the emergency rule has been submitted to the Commission.

(e) Publication. - When the Codifier of Rules enters
an emergency rule in the North Carolina Administrative Code, the Codifier of
Rules must publish the rule in the North Carolina Register. (2003-229, s. 3.)

(a) Steps. - Before an agency adopts a permanent rule,
the agency must comply with the requirements of G.S. 150B-19.1, and it must
take the following actions:

(1) Publish a notice of text in the North Carolina
Register.

(2) When required by G.S. 150B-21.4, prepare or obtain
a fiscal note for the proposed rule.

(3) Repealed by Session Laws 2003-229, s. 4, effective
July 1, 2003.

(4) When required by subsection (e) of this section,
hold a public hearing on the proposed rule after publication of the proposed text
of the rule.

(5) Accept oral or written comments on the proposed
rule as required by subsection (f) of this section.

(b) Repealed by Session Laws 2003-229, s. 4, effective
July 1, 2003.

(c) Notice of Text. - A notice of the proposed text of
a rule must include all of the following:

(1) The text of the proposed rule, unless the rule is a
readoption without substantive changes to the existing rule proposed in
accordance with G.S. 150B-21.3A.

(2) A short explanation of the reason for the proposed
rule.

(2a) A link to the agency's Web site containing the
information required by G.S. 150B-19.1(c).

(3) A citation to the law that gives the agency the
authority to adopt the rule.

(4) The proposed effective date of the rule.

(5) The date, time, and place of any public hearing
scheduled on the rule.

(6) Instructions on how a person may demand a public
hearing on a proposed rule if the notice does not schedule a public hearing on
the proposed rule and subsection (e) of this section requires the agency to
hold a public hearing on the proposed rule when requested to do so.

(7) The period of time during which and the person
within the agency to whom written comments may be submitted on the proposed
rule.

(8) If a fiscal note has been prepared for the rule, a
statement that a copy of the fiscal note can be obtained from the agency.

(9) Repealed by Session Laws 2013-143, s. 1, effective
June 19, 2013.

(d) Mailing List. - An agency must maintain a mailing
list of persons who have requested notice of rule making. When an agency
publishes in the North Carolina Register a notice of text of a proposed rule,
it must mail a copy of the notice or text to each person on the mailing list
who has requested notice on the subject matter described in the notice or the
rule affected. An agency may charge an annual fee to each person on the
agency's mailing list to cover copying and mailing costs.

(e) Hearing. - An agency must hold a public hearing on
a rule it proposes to adopt if the agency publishes the text of the proposed
rule in the North Carolina Register and the agency receives a written request
for a public hearing on the proposed rule within 15 days after the notice of
text is published. The agency must accept comments at the public hearing on
both the proposed rule and any fiscal note that has been prepared in connection
with the proposed rule.

An agency may hold a public hearing on a proposed rule and
fiscal note in other circumstances. When an agency is required to hold a public
hearing on a proposed rule or decides to hold a public hearing on a proposed
rule when it is not required to do so, the agency must publish in the North
Carolina Register a notice of the date, time, and place of the public hearing.
The hearing date of a public hearing held after the agency publishes notice of
the hearing in the North Carolina Register must be at least 15 days after the
date the notice is published. If notice of a public hearing has been published
in the North Carolina Register and that public hearing has been cancelled, the
agency shall publish notice in the North Carolina Register at least 15 days
prior to the date of any rescheduled hearing.

(f) Comments. - An agency must accept comments on the
text of a proposed rule that is published in the North Carolina Register and
any fiscal note that has been prepared in connection with the proposed rule for
at least 60 days after the text is published or until the date of any public
hearing held on the proposed rule, whichever is longer. An agency must consider
fully all written and oral comments received.

(g) Adoption. - An agency shall not adopt a rule until
the time for commenting on the proposed text of the rule has elapsed and shall
not adopt a rule if more than 12 months have elapsed since the end of the time
for commenting on the proposed text of the rule. Prior to adoption, an agency
shall review any fiscal note that has been prepared for the proposed rule and
consider any public comments received in connection with the proposed rule or
the fiscal note. An agency shall not adopt a rule that differs substantially
from the text of a proposed rule published in the North Carolina Register
unless the agency publishes the text of the proposed different rule in the
North Carolina Register and accepts comments on the proposed different rule for
the time set in subsection (f) of this section.

An adopted rule differs substantially from a proposed rule if
it does one or more of the following:

(1) Affects the interests of persons who, based on the
proposed text of the rule published in the North Carolina Register, could not
reasonably have determined that the rule would affect their interests.

(2) Addresses a subject matter or an issue that is not
addressed in the proposed text of the rule.

(3) Produces an effect that could not reasonably have
been expected based on the proposed text of the rule.

When an agency adopts a rule, it shall not take subsequent
action on the rule without following the procedures in this Part. An agency
must submit an adopted rule to the Rules Review Commission within 30 days of
the agency's adoption of the rule.

(h) Explanation. - An agency must issue a concise
written statement explaining why the agency adopted a rule if, within 15 days
after the agency adopts the rule, a person asks the agency to do so. The
explanation must state the principal reasons for and against adopting the rule
and must discuss why the agency rejected any arguments made or considerations
urged against the adoption of the rule. The agency must issue the explanation
within 15 days after receipt of the request for an explanation.

(a) Temporary and Emergency Rules. - A temporary rule
or an emergency rule becomes effective on the date the Codifier of Rules enters
the rule in the North Carolina Administrative Code.

(b) Permanent Rule. - A permanent rule approved by the
Commission becomes effective on the first day of the month following the month
the rule is approved by the Commission, unless the Commission received written
objections to the rule in accordance with subsection (b2) of this section, or
unless the agency that adopted the rule specifies a later effective date.

(b1) Delayed Effective Dates. - Except as provided in G.S. 14-4.1,
if the Commission received written objections to the rule in accordance with
subsection (b2) of this section, the rule becomes effective on the earlier of
the thirty-first legislative day or the day of adjournment of the next regular
session of the General Assembly that begins at least 25 days after the date the
Commission approved the rule, unless a different effective date applies under
this section. If a bill that specifically disapproves the rule is introduced in
either house of the General Assembly before the thirty-first legislative day of
that session, the rule becomes effective on the earlier of either the day an
unfavorable final action is taken on the bill or the day that session of the
General Assembly adjourns without ratifying a bill that specifically
disapproves the rule. If the agency adopting the rule specifies a later
effective date than the date that would otherwise apply under this subsection,
the later date applies. A permanent rule that is not approved by the Commission
or that is specifically disapproved by a bill enacted into law before it
becomes effective does not become effective.

A bill specifically disapproves a rule if it contains a
provision that refers to the rule by appropriate North Carolina Administrative
Code citation and states that the rule is disapproved. Notwithstanding any rule
of either house of the General Assembly, any member of the General Assembly may
introduce a bill during the first 30 legislative days of any regular session to
disapprove a rule that has been approved by the Commission and that either has
not become effective or has become effective by executive order under
subsection (c) of this section.

(b2) Objection. - Any person who objects to the adoption
of a permanent rule may submit written comments to the agency. If the objection
is not resolved prior to adoption of the rule, a person may submit written objections
to the Commission. If the Commission receives written objections from 10 or
more persons, no later than 5:00 P.M. of the day following the day the
Commission approves the rule, clearly requesting review by the legislature in
accordance with instructions posted on the agency's Web site pursuant to G.S. 150B-19.1(c)(4),
and the Commission approves the rule, the rule will become effective as
provided in subsection (b1) of this section. The Commission shall notify the
agency that the rule is subject to legislative disapproval on the day following
the day it receives 10 or more written objections. When the requirements of
this subsection have been met and a rule is subject to legislative disapproval,
the agency may adopt the rule as a temporary rule if the rule would have met
the criteria listed in G.S. 150B-21.1(a) at the time the notice of text
for the permanent rule was published in the North Carolina Register. If the
Commission receives objections from 10 or more persons clearly requesting
review by the legislature, and the rule objected to is one of a group of
related rules adopted by the agency at the same time, the agency that adopted
the rule may cause any of the other rules in the group to become effective as
provided in subsection (b1) of this section by submitting a written statement
to that effect to the Commission before the other rules become effective.

(c) Executive Order Exception. - The Governor may, by
executive order, make effective a permanent rule that has been approved by the
Commission but the effective date of which has been delayed in accordance with
subsection (b1) of this section upon finding that it is necessary that the rule
become effective in order to protect public health, safety, or welfare. A rule
made effective by executive order becomes effective on the date the order is
issued or at a later date specified in the order. When the Codifier of Rules
enters in the North Carolina Administrative Code a rule made effective by
executive order, the entry must reflect this action.

A rule that is made effective by executive order remains in
effect unless it is specifically disapproved by the General Assembly in a bill
enacted into law on or before the day of adjournment of the regular session of
the General Assembly that begins at least 25 days after the date the executive
order is issued. A rule that is made effective by executive order and that is
specifically disapproved by a bill enacted into law is repealed as of the date
specified in the bill. If a rule that is made effective by executive order is
not specifically disapproved by a bill enacted into law within the time set by
this subsection, the Codifier of Rules must note this in the North Carolina
Administrative Code.

(c1) Fees. - Notwithstanding any other provision of this
section, a rule that establishes a new fee or increases an existing fee shall
not become effective until the agency has complied with the requirements of G.S. 12-3.1.

(d) Legislative Day and Day of Adjournment. - As used
in this section:

(1) A "legislative day" is a day on which
either house of the General Assembly convenes in regular session.

(2) The "day of adjournment" of a regular
session held in an odd-numbered year is the day the General Assembly adjourns
by joint resolution or by operation of law for more than 30 days.

(3) The "day of adjournment" of a regular
session held in an even-numbered year is the day the General Assembly adjourns
sine die.

(e) OSHA Standard. - A permanent rule concerning an
occupational safety and health standard that is adopted by the Occupational
Safety and Health Division of the Department of Labor and is identical to a
federal regulation promulgated by the Secretary of the United States Department
of Labor becomes effective on the date the Division delivers the rule to the
Codifier of Rules, unless the Division specifies a later effective date. If the
Division specifies a later effective date, the rule becomes effective on that
date.

(3), (4) Repealed by Session Laws 2019-140, s. 3(a), effective
July 19, 2019, and applicable to agency rule reports submitted to the Office of
Administrative Hearings pursuant to G.S. 150B-21.3A(c)(1) on or after
October 1, 2019.

(5) Public comment. - Means written comments objecting
to the rule, in whole or in part, or objecting to an agency's determination of
the rule as necessary or unnecessary, received by an agency from any member of
the public, including an association or other organization representing the
regulated community or other members of the public.

(6) Unnecessary rule. - Means a rule that the agency
determines to be obsolete, redundant, or otherwise not needed.

(b) Automatic Expiration. - Except as provided in
subsection (e) of this section, any rule for which the agency that adopted the
rule has not conducted a review in accordance with this section shall expire on
the date set in the schedule established by the Commission pursuant to
subsection (d) of this section.

(c) Review Process. - Each agency subject to this
Article shall conduct a review of the agency's existing rules at least once
every 10 years in accordance with the following process:

(1) Step 1: The agency shall conduct an analysis of
each existing rule and make an initial determination as to whether the rule is
necessary or unnecessary. The agency shall then post the results of the initial
determination on its Web site and invite the public to comment on the rules and
the agency's initial determination. The agency shall also submit the results of
the initial determination to the Office of Administrative Hearings for posting
on its Web site. The agency shall accept public comment for no less than 60
days following the posting. The agency shall review the public comments and
prepare a brief response addressing the merits of each comment. After
completing this process, the agency shall submit a report to the Commission. The
report shall include the following items:

a. The agency's initial determination.

b. All public comments received in response to the
agency's initial determination.

c. The agency's response to the public comments.

(2) Step 2: The Commission shall review the reports
received from the agencies pursuant to subdivision (1) of this subsection. If a
public comment relates to a rule that the agency determined to be unnecessary,
the Commission shall determine whether the public comment has merit and, if so,
designate the rule as necessary. For purposes of this subsection, a public
comment has merit if it addresses the specific substance of the rule. The
Commission shall prepare a final determination report and submit the report to
the Committee for consultation in accordance with subdivision (3) of this
subsection. The report shall include the following items:

a. The agency's initial determination.

b. All public comments received in response to the
agency's initial determination.

c. The agency's response to the public comments.

d. A summary of the Commission's determinations
regarding public comments.

e. Repealed by Session Laws 2019-140, s. 3(a),
effective July 19, 2019, and applicable to agency rule reports submitted to the
Office of Administrative Hearings pursuant to G.S. 150B-21.3A(c)(1) on or
after October 1, 2019.

f. A determination that all rules that the agency
determined to be unnecessary and for which no public comment was received or
for which the Commission determined that the public comment was without merit
shall expire on the first day of the month following the date the report
becomes effective in accordance with this section.

g. A determination that all rules that the agency
determined to be necessary or that the Commission designated as necessary shall
be readopted as though the rules were new rules in accordance with this
Article.

(3) Step 3: The final determination report shall not
become effective until the agency has consulted with the Committee. The
determinations contained in the report pursuant to sub-subdivisions f. and g.
of subdivision (2) of this subsection shall become effective on the date the
report is reviewed by the Committee. If the Committee does not hold a meeting
to hear the consultation required by this subdivision within 60 days of receipt
of the final determination report, the consultation requirement is deemed
satisfied, and the determinations contained in the report become effective on
the 61st day following the date the Committee received the report. If the
Committee disagrees with a determination regarding a specific rule contained in
the report, the Committee may recommend that the General Assembly direct the
agency to conduct a review of the specific rule in accordance with this section
in the next year following the consultation.

(d) Timetable. - The Commission shall establish a
schedule for the review and readoption of existing rules in accordance with
this section on a decennial basis as follows:

(1) With regard to the review process, the Commission
shall assign each Title of the Administrative Code a date by which the review
required by this section must be completed. In establishing the schedule, the
Commission shall consider the scope and complexity of rules subject to this
section and the resources required to conduct the review required by this
section. The Commission shall have broad authority to modify the schedule and
extend the time for review in appropriate circumstances. Except as provided in
subsections (e) and (f) of this section, if the agency fails to conduct the
review by the date set by the Commission, the rules contained in that Title
which have not been reviewed will expire. The Commission shall report to the
Committee any agency that fails to conduct the review. The Commission may
exempt rules that have been adopted or amended within the previous 10 years
from the review required by this section. However, any rule exempted on this
basis must be reviewed in accordance with this section no more than 10 years
following the last time the rule was amended.

(2) With regard to the readoption of rules as required
by sub-subdivision (c)(2)g. of this section, once the final determination
report becomes effective, the Commission shall establish a date by which the
agency must readopt the rules. The Commission shall consult with the agency and
shall consider the agency's rule-making priorities in establishing the
readoption date. The agency may amend a rule as part of the readoption process.
If a rule is readopted without substantive change or if the rule is amended to
impose a less stringent burden on regulated persons, the agency is not required
to prepare a fiscal note as provided by G.S. 150B-21.4.

(e) Exclusions. - The Commission shall report annually
to the Committee on any rules that do not expire pursuant to this subsection.
The following rules shall not expire as provided in this section:

(1) Rules adopted to conform to or implement federal
law.

(2) Rules deemed by the Boards of Trustees established
under G.S. 128-28 and G.S. 135-6 to protect inchoate or accrued rights
of members of the Retirement Systems administered by the State Treasurer.

(e1) Repealed by Session Laws 2019-140, s. 3(a),
effective July 19, 2019, and applicable to agency rule reports submitted to the
Office of Administrative Hearings pursuant to G.S. 150B-21.3A(c)(1) on or
after October 1, 2019.

(f) Other Reviews. - Notwithstanding any provision of
this section, an agency may subject a rule that it determines to be unnecessary
to review under this section at any time by notifying the Commission that it
wishes to be placed on the schedule for the current year. The Commission may
also subject a rule to review under this section at any time by notifying the
agency that the rule has been placed on the schedule for the current year. (2013-413, s. 3(b); 2014-115, s. 17; 2014-120, s. 2; 2015-164,
s. 7; 2015-286, s. 1.6(a); 2019-140, s. 3(a).)

§ 150B-21.4. Fiscal and regulatory impact analysis on rules.

(a) State Funds. - Before an agency publishes in the
North Carolina Register the proposed text of a permanent rule change that would
require the expenditure or distribution of funds subject to the State Budget
Act, Chapter 143C of the General Statutes, it must submit the text of the
proposed rule change, an analysis of the proposed rule change, and a fiscal
note on the proposed rule change to the Office of State Budget and Management
and obtain certification from the Office of State Budget and Management that
the funds that would be required by the proposed rule change are available. The
fiscal note must state the amount of funds that would be expended or
distributed as a result of the proposed rule change and explain how the amount
was computed. The Office of State Budget and Management must certify a proposed
rule change if funds are available to cover the expenditure or distribution
required by the proposed rule change.

(a1) DOT Analyses. - In addition to the requirements of
subsection (a) of this section, any agency that adopts a rule affecting
environmental permitting of Department of Transportation projects shall conduct
an analysis to determine if the rule will result in an increased cost to the
Department of Transportation. The analysis shall be conducted and submitted to
the Board of Transportation when the agency submits the notice of text for
publication. The agency shall consider any recommendations offered by the Board
of Transportation prior to adopting the rule. Once a rule subject to this subsection
is adopted, the Board of Transportation may submit any objection to the rule it
may have to the Rules Review Commission. If the Rules Review Commission
receives an objection to a rule from the Board of Transportation no later than
5:00 P.M. of the day following the day the Commission approves the rule, then
the rule shall only become effective as provided in G.S. 150B-21.3(b1).

(b) Local Funds. - Before an agency publishes in the
North Carolina Register the proposed text of a permanent rule change that would
affect the expenditures or revenues of a unit of local government, it must
submit the text of the proposed rule change and a fiscal note on the proposed
rule change to the Office of State Budget and Management as provided by G.S.
150B-21.26, the Fiscal Research Division of the General Assembly, the North
Carolina Association of County Commissioners, and the North Carolina League of
Municipalities. The fiscal note must state the amount by which the proposed
rule change would increase or decrease expenditures or revenues of a unit of
local government and must explain how the amount was computed.

(b1) Substantial Economic Impact. - Before an agency
publishes in the North Carolina Register the proposed text of a permanent rule
change that would have a substantial economic impact and that is not identical
to a federal regulation that the agency is required to adopt, the agency shall
prepare a fiscal note for the proposed rule change and have the note approved
by the Office of State Budget and Management. The agency must also obtain from
the Office a certification that the agency adhered to the regulatory principles
set forth in G.S. 150B-19.1(a)(2), (5), and (6). The agency may request the
Office of State Budget and Management to prepare the fiscal note only after,
working with the Office, it has exhausted all resources, internal and external,
to otherwise prepare the required fiscal note. If an agency requests the Office
of State Budget and Management to prepare a fiscal note for a proposed rule
change, that Office must prepare the note within 90 days after receiving a
written request for the note. If the Office of State Budget and Management
fails to prepare a fiscal note within this time period, the agency proposing
the rule change shall prepare a fiscal note. A fiscal note prepared in this
circumstance does not require approval of the Office of State Budget and
Management.

If an agency prepares the required fiscal note, the agency
must submit the note to the Office of State Budget and Management for review.
The Office of State Budget and Management shall review the fiscal note within
14 days after it is submitted and either approve the note or inform the agency
in writing of the reasons why it does not approve the fiscal note. After
addressing these reasons, the agency may submit the revised fiscal note to that
Office for its review. If an agency is not sure whether a proposed rule change
would have a substantial economic impact, the agency shall ask the Office of
State Budget and Management to determine whether the proposed rule change has a
substantial economic impact. Failure to prepare or obtain approval of the
fiscal note as required by this subsection shall be a basis for objection to
the rule under G.S. 150B-21.9(a)(4).

As used in this subsection, the term "substantial
economic impact" means an aggregate financial impact on all persons
affected of at least one million dollars ($1,000,000) in a 12-month period. In
analyzing substantial economic impact, an agency shall do the following:

(1) Determine and identify the appropriate time frame
of the analysis.

(2) Assess the baseline conditions against which the
proposed rule is to be measured.

(3) Describe the persons who would be subject to the
proposed rule and the type of expenditures these persons would be required to
make.

(4) Estimate any additional costs that would be created
by implementation of the proposed rule by measuring the incremental difference
between the baseline and the future condition expected after implementation of
the rule. The analysis should include direct costs as well as opportunity
costs. Cost estimates must be monetized to the greatest extent possible. Where
costs are not monetized, they must be listed and described.

(5) For costs that occur in the future, the agency
shall determine the net present value of the costs by using a discount factor
of seven percent (7%).

(b2) Content. - A fiscal note required by subsection
(b1) of this section must contain the following:

(1) A description of the persons who would be affected
by the proposed rule change.

(2) A description of the types of expenditures that
persons affected by the proposed rule change would have to make to comply with
the rule and an estimate of these expenditures.

(3) A description of the purpose and benefits of the
proposed rule change.

(4) An explanation of how the estimate of expenditures
was computed.

(5) A description of at least two alternatives to the
proposed rule that were considered by the agency and the reason the
alternatives were rejected. The alternatives may have been identified by the
agency or by members of the public.

(c) Errors. - An erroneous fiscal note prepared in
good faith does not affect the validity of a rule.

§ 150B-21.5. Circumstances when notice and rule-making
hearing not required; circumstances when submission to the Commission not
required.

(a) Amendment. - An agency is not required to publish
a notice of text in the North Carolina Register, hold a public hearing, or
submit the amended rule to the Commission for review when it proposes to amend
a rule to do one of the following:

(1) Reletter or renumber the rule or subparts of the
rule.

(2) Substitute one name for another when an
organization or position is renamed.

(3) Correct a citation in the rule to another rule or
law when the citation has become inaccurate since the rule was adopted because
of the repeal or renumbering of the cited rule or law.

(4) Change information that is readily available to the
public, such as an address, email address, a telephone number, or a Web site.

(a1) Response to Commission. - An agency is not required
to publish a notice of text in the North Carolina Register or hold a public
hearing when it proposes to change the rule in response to a request or an
objection by the Commission, unless the Commission determines that the change
is substantial.

(b) Repeal. - An agency is not required to publish a
notice of text in the North Carolina Register or hold a public hearing when it
proposes to repeal a rule as a result of any of the following:

(1) The law under which the rule was adopted is
repealed.

(2) The law under which the rule was adopted or the
rule itself is declared unconstitutional.

(3) The rule is declared to be in excess of the
agency's statutory authority.

(c) OSHA Standard. - The Occupational Safety and
Health Division of the Department of Labor is not required to publish a notice
of text in the North Carolina Register or hold a public hearing when it
proposes to adopt a rule that concerns an occupational safety and health
standard and is identical to a federal regulation promulgated by the Secretary
of the United States Department of Labor. The Occupational Safety and Health
Division is not required to submit to the Commission for review a rule for
which notice and hearing is not required under this subsection.

(d) State Building Code. - The Building Code Council is
not required to publish a notice of text in the North Carolina Register when it
proposes to adopt a rule that concerns the North Carolina State Building Code.
The Building Code Council is required to publish a notice in the North Carolina
Register when it proposes to adopt a rule that concerns the North Carolina
State Building Code. The notice must include all of the following:

(1) A statement of the subject matter of the proposed
rule making.

(2) A short explanation of the reason for the proposed
action.

(3) A citation to the law that gives the agency the
authority to adopt a rule on the subject matter of the proposed rule making.

(4) The person to whom questions or written comments
may be submitted on the subject matter of the proposed rule making.

The Building Code Council is required to submit to the
Commission for review a rule for which notice of text is not required under
this subsection. In adopting a rule, the Council shall comply with the
procedural requirements of G.S. 150B-21.3.

(e) An agency that adopts or amends a rule pursuant to
subsection (a) or (c) of this section shall notify the Codifier of Rules of its
actions. When notified of an agency action taken pursuant to subsection (a) or
(c) of this section, the Codifier of Rules shall make the appropriate change to
the North Carolina Administrative Code. (1991, c.
418, s. 1; 1995, c. 504, s. 12; 1997-34, s. 4; 2001-141, s. 5; 2001-421, s.
1.3; 2003-229, s. 7; 2019-140, s. 1(a).)

§ 150B-21.6. Incorporating
material in a rule by reference.

An agency may incorporate the following material by reference
in a rule without repeating the text of the referenced material:

(1) Another rule or part of a rule adopted by the
agency.

(2) All or part of a code, standard, or regulation
adopted by another agency, the federal government, or a generally recognized
organization or association.

(3) Repealed by Session Laws 1997-34, s. 5.

In incorporating material by reference, the agency must
designate in the rule whether or not the incorporation includes subsequent
amendments and editions of the referenced material. The agency can change this
designation only by a subsequent rule-making proceeding. The agency must have
copies of the incorporated material available for inspection and must specify
in the rule both where copies of the material can be obtained and the cost on
the date the rule is adopted of a copy of the material.

§ 150B-21.7. Effect of transfer of duties or termination of
agency on rules.

(a) When a law that authorizes an agency to adopt a
rule is repealed and another law gives the same or another agency substantially
the same authority to adopt a rule, the rule remains in effect until the agency
with authority over the rule amends or repeals the rule. When a law that
authorizes an agency to adopt a rule is repealed and another law does not give
the same or another agency substantially the same authority to adopt a rule, a
rule adopted under the repealed law is repealed as of the date the law is
repealed. The agency that adopted the rule shall notify the Codifier of Rules
that the rule is repealed pursuant to this subsection.

(b) When an executive order abolishes part or all of
an agency and transfers a function of that agency to another agency, a rule
concerning the transferred function remains in effect until the agency to which
the function is transferred amends or repeals the rule. When an executive order
abolishes part or all of an agency and does not transfer a function of that
agency to another agency, a rule concerning a function abolished by the
executive order is repealed as of the effective date of the executive order.
The agency that adopted the rule shall notify the Codifier of Rules that the
rule is repealed pursuant to this subsection.

(c) When notified of a rule repealed under this
section, the Codifier of Rules must enter the repeal of the rule in the North
Carolina Administrative Code. (1973, c. 1331, s. 1;
1985, c. 746, s. 1; 1991, c. 418, s. 1; 2013-143, s. 2.)

Part 3. Review by Commission.

§ 150B-21.8. Review of rule by Commission.

(a) Emergency Rule. - The Commission does not review
an emergency rule.

(b) Temporary and Permanent Rules. - An agency must
submit temporary and permanent rules adopted by it to the Commission before the
rule can be included in the North Carolina Administrative Code. The Commission
reviews a temporary or permanent rule in accordance with the standards in G.S.
150B-21.9 and follows the procedure in this Part in its review of a rule.

(c) Scope. - When the Commission reviews an amendment
to a permanent rule, it may review the entire rule that is being amended. The
procedure in G.S. 150B-21.12 applies when the Commission objects to a part of a
permanent rule that is within its scope of review but is not changed by a rule
amendment.

(d) Judicial Review. - When the Commission returns a
permanent rule to an agency in accordance with G.S. 150B-21.12(d), the agency
may file an action for declaratory judgment in Wake County Superior Court
pursuant to Article 26 of Chapter 1 of the General Statutes. (1991, c. 418, s. 1; 2003-229, s. 8.)

§ 150B-21.9. Standards and timetable for review by
Commission.

(a) Standards. - The Commission must determine whether
a rule meets all of the following criteria:

(1) It is within the authority delegated to the agency
by the General Assembly.

(2) It is clear and unambiguous.

(3) It is reasonably necessary to implement or
interpret an enactment of the General Assembly, or of Congress, or a regulation
of a federal agency. The Commission shall consider the cumulative effect of all
rules adopted by the agency related to the specific purpose for which the rule
is proposed.

(4) It was adopted in accordance with Part 2 of this
Article.

The Commission shall not consider questions relating to the
quality or efficacy of the rule but shall restrict its review to determination
of the standards set forth in this subsection.

The Commission may ask the Office of State Budget and
Management to determine if a rule has a substantial economic impact and is
therefore required to have a fiscal note. The Commission must ask the Office of
State Budget and Management to make this determination if a fiscal note was not
prepared for a rule and the Commission receives a written request for a
determination of whether the rule has a substantial economic impact.

(a1) Entry of a rule in the North Carolina
Administrative Code after review by the Commission creates a rebuttable
presumption that the rule was adopted in accordance with Part 2 of this
Article.

(b) Timetable. - The Commission must review a
permanent rule submitted to it on or before the twentieth of a month by the
last day of the next month. The Commission must review a rule submitted to it
after the twentieth of a month by the last day of the second subsequent month.
The Commission must review a temporary rule in accordance with the timetable
and procedure set forth in G.S. 150B-21.1. (1991, c.
418, s. 1; 1995, c. 507, s. 27.8(f); 2000-140, s. 93.1(a); 2001-424, s.
12.2(b); 2003-229, s. 9.)

§ 150B-21.10. Commission action on permanent rule.

At the first meeting at which a permanent rule is before the
Commission for review, the Commission must take one of the following actions:

(1) Approve the rule, if the Commission determines that
the rule meets the standards for review.

(2) Object to the rule, if the Commission determines
that the rule does not meet the standards for review.

(3) Extend the period for reviewing the rule, if the
Commission determines it needs additional information on the rule to be able to
decide whether the rule meets the standards for review.

In reviewing a new rule or an amendment to an existing rule, the
Commission may request an agency to make technical changes to the rule and may
condition its approval of the rule on the agency's making the requested
technical changes. (1991, c. 418, s. 1.)

§ 150B-21.11. Procedure when Commission approves permanent
rule.

When the Commission approves a permanent rule, it must notify
the agency that adopted the rule of the Commission's approval, and deliver the
approved rule to the Codifier of Rules.

If the approved rule will increase or decrease expenditures
or revenues of a unit of local government, the Commission must also notify the
Governor of the Commission's approval of the rule and deliver a copy of the
approved rule to the Governor by the end of the month in which the Commission
approved the rule. (1991, c. 418, s. 1; 1995, c. 415,
s. 4; c. 507, s. 27.8(g); 2011-291, s. 2.59; 2011-398, s. 7; 2018-142, s. 22.)

§ 150B-21.12. Procedure when Commission objects to a
permanent rule.

(a) Action. - When the Commission objects to a
permanent rule, it must send the agency that adopted the rule a written
statement of the objection and the reason for the objection. The agency that
adopted the rule must take one of the following actions:

(1) Change the rule to satisfy the Commission's
objection and submit the revised rule to the Commission.

(2) Submit a written response to the Commission
indicating that the agency has decided not to change the rule.

(b) Time Limit. - An agency that is not a board or
commission must take one of the actions listed in subsection (a) of this
section within 30 days after receiving the Commission's statement of objection.
A board or commission must take one of these actions within 30 days after
receiving the Commission's statement of objection or within 10 days after the
board or commission's next regularly scheduled meeting, whichever comes later.

(c) Changes. - When an agency changes a rule in
response to an objection by the Commission, the Commission must determine
whether the change satisfies the Commission's objection. If it does, the
Commission must approve the rule. If it does not, the Commission must send the
agency a written statement of the Commission's continued objection and the
reason for the continued objection. The Commission must also determine whether
the change is substantial. In making this determination, the Commission shall
use the standards set forth in G.S. 150B-21.2(g). If the change is substantial,
the revised rule shall be published and reviewed in accordance with the
procedure set forth in G.S. 150B-21.1(a3) and (b).

(d) Return of Rule. - A rule to which the Commission
has objected remains under review by the Commission until the agency that
adopted the rule decides not to satisfy the Commission's objection and makes a
written request to the Commission to return the rule to the agency. When the
Commission returns a rule to which it has objected, it must notify the Codifier
of Rules of its action. If the rule that is returned would have increased or
decreased expenditures or revenues of a unit of local government, the
Commission must also notify the Governor of its action and must send a copy of
the record of the Commission's review of the rule to the Governor. The record
of review consists of the rule, the Commission's letter of objection to the
rule, the agency's written response to the Commission's letter, and any other
relevant documents before the Commission when it decided to object to the rule.

§ 150B-21.13. Procedure when Commission extends period for
review of permanent rule.

When the Commission extends the period for review of a
permanent rule, it must notify the agency that adopted the rule of the
extension and the reason for the extension. After the Commission extends the
period for review of a rule, it may call a public hearing on the rule. Within
70 days after extending the period for review of a rule, the Commission must
decide whether to approve the rule, object to the rule, or call a public
hearing on the rule. (1991, c. 418, s. 1.)

§ 150B-21.14. Public hearing on a rule.

The Commission may call a public hearing on a rule when it
extends the period for review of the rule. At the request of an agency, the
Commission may call a public hearing on a rule that is not before it for
review. Calling a public hearing on a rule not already before the Commission
for review places the rule before the Commission for review. When the
Commission decides to call a public hearing on a rule, it must publish notice
of the public hearing in the North Carolina Register.

After a public hearing on a rule, the Commission must approve
the rule or object to the rule in accordance with the standards and procedures
in this Part. The Commission must make its decision of whether to approve or
object to the rule within 70 days after the public hearing. (1991, c. 418, s. 1.)

§ 150B-21.15: Repealed by Session Laws 1995, c. 507, s.
27.8(i).

§ 150B-21.16: Repealed by
Session Laws 2011-398, s. 9, effective October 1, 2011, and applicable to rules
adopted on or after that date.

Part 4. Publication of Code and Register.

§ 150B-21.17. North Carolina Register.

(a) Content. - The Codifier of Rules must publish the
North Carolina Register. The North Carolina Register must be published at least
two times a month and must contain the following:

(1) Temporary rules entered in the North Carolina
Administrative Code.

(1a) The text of proposed rules and the text of permanent
rules approved by the Commission.

(1b) Emergency rules entered into the North Carolina
Administrative Code.

(2) Repealed by Session Laws 2011-398, s. 10, effective
October 1, 2011, and applicable to rules adopted on or after that date

(3) Executive orders of the Governor.

(4) Final decision letters from the United States
Attorney General concerning changes in laws that affect voting in a
jurisdiction subject to section 5 of the Voting Rights Act of 1965, as required
by G.S. 120-30.9H.

(5) Repealed by Session Laws 2011-330, s. 33(c),
effective June 27, 2011, and by Session Laws 2011-398, s. 10, effective
October 1, 2011, and applicable to rules adopted on or after that date.

(6) Other information the Codifier determines to be
helpful to the public.

(b) Form. - When an agency publishes notice in the
North Carolina Register of the proposed text of a new rule, the Codifier of
Rules must publish the complete text of the proposed new rule. In publishing
the text of a proposed new rule, the Codifier must indicate the rule is new by
underlining the proposed text of the rule.

When an agency publishes notice in the North Carolina
Register of the proposed text of an amendment to an existing rule, the Codifier
must publish the complete text of the rule that is being amended unless the
Codifier determines that publication of the complete text of the rule being
amended is not necessary to enable the reader to understand the proposed
amendment. In publishing the text of a proposed amendment to a rule, the
Codifier must indicate deleted text with overstrikes and added text with
underlines.

When an agency publishes notice in the North Carolina
Register of the proposed repeal of an existing rule, the Codifier must publish
the complete text of the rule the agency proposes to repeal unless the Codifier
determines that publication of the complete text is impractical. In publishing
the text of a rule the agency proposes to repeal, the Codifier must indicate
the rule is to be repealed.

(a) Authority. - After consulting with the agency that
adopted the rule, the Codifier of Rules may revise a rule to do one or more of
the following:

(1) Rearrange the order of the rule in the Code or the
order of the subsections, subdivisions, or other subparts of the rule.

(2) Provide a catch line or heading for the rule or
revise the catch line or heading of the rule.

(3) Reletter or renumber the rule or the subparts of
the rule in accordance with a uniform system.

(4) Rearrange definitions and lists.

(5) Make other changes in arrangement or in form that
do not change the substance of the rule and are necessary or desirable for a
clear and orderly arrangement of the rule.

(6) Omit from the published rule a map, a diagram, an
illustration, a chart, or other graphic material, if the Codifier of Rules
determines that the Office of Administrative Hearings does not have the
capability to publish the material or that publication of the material is not
practicable. When the Codifier of Rules omits graphic material from the
published rule, the Codifier must insert a reference to the omitted material
and information on how to obtain a copy of the omitted material.

(7) Substitute one name for another when an organization
or position is renamed.

(8) Correct a citation in the rule to another rule or
law when the citation has become inaccurate since the rule was adopted because
of the repeal or renumbering of the cited rule or law.

(9) Change information that is readily available to the
public, such as an address, email address, a telephone number, or a Web site.

(10) Correct a typographical error.

(b) Effect. - Revision of a rule by the Codifier of
Rules under this section does not affect the effective date of the rule or
require the agency to readopt or resubmit the rule. When the Codifier of Rules
revises the form of a rule, the Codifier of Rules must send the agency that
adopted the rule a copy of the revised rule. The revised rule is the official
rule, unless the rule was revised under subdivision (a)(6) of this section to
omit graphic material. When a rule is revised under that subdivision, the
official rule is the published text of the rule plus the graphic material that
was not published. (1973, c. 1331, s. 1; 1979, c.
571, s. 1; 1981, c. 688, s. 14; 1983, c. 927, ss. 6, 9; 1985, c. 746, s. 1;
1985 (Reg. Sess., 1986), c. 1022, s. 1(1); c. 1028, s. 35; 1987, c. 285, s. 16;
1987 (Reg. Sess., 1988), c. 1111, s. 23; 1991, c. 418, s. 1; 1997-34, s. 6;
2013-143, s. 3; 2019-140, s. 1(b).)

§ 150B-21.21. Publication of rules of North Carolina State
Bar, Building Code Council, and exempt agencies.

(a) State Bar. - The North Carolina State Bar must
submit a rule adopted or approved by it and entered in the minutes of the North
Carolina Supreme Court to the Codifier of Rules for inclusion in the North
Carolina Administrative Code. The State Bar must submit a rule within 30 days
after it is entered in the minutes of the Supreme Court. The Codifier of Rules
must compile, make available for public inspection, and publish a rule included
in the North Carolina Administrative Code under this subsection in the same
manner as other rules in the Code.

(a1) Building Code Council. - The Building Code Council
shall publish the North Carolina State Building Code as provided in G.S. 143-138(g).
The Codifier of Rules is not required to publish the North Carolina State
Building Code in the North Carolina Administrative Code.

(b) Exempt Agencies. - Notwithstanding any other
provision of law, an agency that is exempted from this Article by G.S. 150B-1
or any other statute must submit a temporary or permanent rule adopted by it to
the Codifier of Rules for inclusion in the North Carolina Administrative Code.
These exempt agencies must submit a rule to the Codifier of Rules within 30
days after adopting the rule.

(c) Publication. - A rule submitted to the Codifier of
Rules under this section must be in the physical form specified by the Codifier
of Rules. The Codifier of Rules must compile, make available for public
inspection, and publish a rule submitted under this section in the same manner
as other rules in the North Carolina Administrative Code. (1991, c. 418, s. 1; 1997-34, s. 7; 2001-141, s. 7; 2011-398,
s. 12.)

§ 150B-21.22. Effect of inclusion in Code.

Official or judicial notice can be taken of a rule in the
North Carolina Administrative Code and shall be taken when appropriate. (1973, c. 1331, s. 1; 1985, c. 746, s. 1; 1991, c. 418, s.
1; 1997-34, s. 8.)

§ 150B-21.23: Repealed by
Session Laws 2011-398, s. 13, effective October 1, 2011, and applicable to
rules adopted on or after that date.

§ 150B-21.24. Access to Register and Code.

(a) Register. - The Codifier of Rules shall make
available the North Carolina Register on the Internet at no charge.

A person who is not entitled to a free copy of the North
Carolina Administrative Code or North Carolina Register may obtain a copy by
paying a fee set by the Codifier of Rules. The Codifier must set separate fees
for the North Carolina Register and the North Carolina Administrative Code in
amounts that cover publication, copying, and mailing costs. All monies
received under this section must be credited to the General Fund. (1991, c. 418, s. 1.)

Part 5. Rules Affecting Local Governments.

§ 150B-21.26. Office of State Budget and Management to
conduct preliminary review of certain administrative rules.

(a) Preliminary Review. - At least 60 days before an
agency publishes in the North Carolina Register the proposed text of a
permanent rule change that would affect the expenditures or revenues of a unit
of local government, the agency must submit all of the following to the Office
of State Budget and Management for preliminary review:

(1) The text of the proposed rule change.

(2) A short explanation of the reason for the proposed
change.

(3) A fiscal note stating the amount by which the
proposed rule change would increase or decrease expenditures or revenues of a
unit of local government and explaining how the amount was computed.

(b) Scope. - The preliminary review of a proposed
permanent rule change that would affect the expenditures or revenues of a unit
of local government shall include consideration of the following:

(1) The agency's explanation of the reason for the
proposed change.

(2) Any unanticipated effects of the proposed change on
local government budgets.

(3) The potential costs of the proposed change weighed
against the potential risks to the public of not taking the proposed change. (1995, c. 415, s. 3; c. 507, s. 27.8(w); 2011-398, s. 14.)

§ 150B-21.27. Minimizing the effects of rules on local
budgets.

In adopting permanent rules that would increase or decrease
the expenditures or revenues of a unit of local government, the agency shall
consider the timing for implementation of the proposed rule as part of the
preparation of the fiscal note required by G.S. 150B-21.4(b). If the
computation of costs in a fiscal note indicates that the proposed rule change
will disrupt the budget process as set out in the Local Government Budget and
Fiscal Control Act, Article 3 of Chapter 159 of the General Statutes, the agency
shall specify the effective date of the change as July 1 following the date the
change would otherwise become effective under G.S. 150B-21.3. (1995, c. 415, s. 3; c. 507, s. 27.8(x).)

§ 150B-21.28. Role of the Office of State Budget and
Management.

The Office of State Budget and Management shall:

(1) Compile an annual summary of the projected fiscal
impact on units of local government of State administrative rules adopted
during the preceding fiscal year.

(2) Compile from information provided by each agency
schedules of anticipated rule actions for the upcoming fiscal year.

(3) Provide the Governor, the General Assembly, the
North Carolina Association of County Commissioners, and the North Carolina
League of Municipalities with a copy of the annual summary and schedules by no
later than March 1 of each year. (1995, c. 415, s. 3;
2000-140, s. 93.1(a); 2001-424, s. 12.2(b).)